Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
The risks that can come from buying these assets are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
Privia Health (PRVA)
One-Year Revenue Growth: +24.1%
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Does PRVA Give Us Pause?
- Modest revenue base of $2.36 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.7% for the last five years
- Push for growth has led to negative returns on capital, signaling value destruction
Privia Health is trading at $19.63 per share, or 18x forward P/E. Dive into our free research report to see why there are better opportunities than PRVA.
Two Growth Stocks to Watch:
Bloom Energy (BE)
One-Year Revenue Growth: +91%
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Is BE a Top Pick?
- Annual revenue growth of 53.1% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $294.25 per share, Bloom Energy trades at 74.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
First Advantage (FA)
One-Year Revenue Growth: +32.9%
Processing over 200 million screens annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.
Why Are We Fans of FA?
- Impressive 48.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
First Advantage’s stock price of $17.64 implies a valuation ratio of 13.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
